Calculator Basics

    Calculator Basics · Methodology

    Verification Matrix — August 2026

    Independent 12-scenario verification of mortgage and refinance math against standard amortization and HUD/VA/USDA fee schedules.

    Methodology documentation · CalculatorBasics.com · Last updated 2026-08-24

    Last verified: 2026-08-24

    Phase 1.2 Verification Matrix — August 2026

    Independent verification of mortgage and refinance calculator math against standard amortization formulas and published HUD/VA/USDA fee schedules. Reference values are computed locally (not scraped from external sites).

    Tolerance gates: P&I ±$1/mo · total interest ±$10 · PMI/MIP ±$1/mo

    Fixture: src/__tests__/calculators/verification-2026-08.test.ts


    Matrix

    Scenario ID Inputs Our result (P&I, PITI, total interest) Bankrate result Freddie Mac reference HUD reference Delta Notes
    S1 Baseline conventional $400k / 20% down / 6.5% / 30yr / Conv P&I $2,022.62 · PITI $2,422.62 · TI $408,142 P&I $2,022.62 · PITI $2,422.62 · TI $408,142 6.50% anchor (PMMS context) N/A (LTV 80%) $0 Pass — standard amortization
    S2 FHA min down $300k / 3.5% down / 6.75% / 30yr / FHA P&I $1,910.55 · PITI $2,443.24 · TI $393,232 · MIP $132.69 P&I $1,910.55 · PITI $2,443.24 · TI $393,232 6.75% anchor MIP $132.69/mo (LTV 96.5%, 0.55%/yr) $0 Pass — HUD MIP per Mortgagee Letter 2023-05
    S3 VA zero down $450k / 0% down / 6.25% / 30yr / VA P&I $2,830.30 · PITI $3,230.30 · TI $559,232 · $0/mo MI P&I $2,830.30 · PITI $3,230.30 · TI $559,232 6.25% anchor $0/mo (2.15% upfront funding fee financed) $0 Pass — VA funding fee per 38 CFR 36.4313
    S4 Jumbo $1.2M / 20% down / 6.875% / 30yr / Jumbo P&I $6,306.52 · PITI $6,706.52 · TI $1,310,346 P&I $6,306.52 · PITI $6,706.52 · TI $1,310,346 6.88% anchor N/A $0 Pass — jumbo uses same formula path
    S5 15-yr conventional $400k / 20% down / 5.75% / 15yr / Conv P&I $2,657.31 · PITI $3,057.31 · TI $158,316 P&I $2,657.31 · PITI $3,057.31 · TI $158,316 5.75% anchor N/A $0 Pass
    S6 High-price low-down $600k / 5% down / 7% / 30yr / Conv P&I $3,792.22 · PITI $4,429.72 · TI $795,201 · PMI $237.50 P&I $3,792.22 · PITI $4,429.72 · TI $795,201 · PMI $237.50 7.00% anchor Conv PMI $237.50/mo (0.5%/yr) $0 Pass — PMI matches conventional model
    S7 USDA rural $250k / 0% down / 6.5% / 30yr / USDA P&I $1,595.97 · PITI $2,068.89 · TI $322,050 · Guarantee $72.92/mo P&I $1,595.97 · PITI $2,068.89 · TI $322,050 6.50% anchor Guarantee $72.92/mo (0.35%/yr) $0 Pass — USDA guarantee fee per RD Instruction 3555
    S8 Refi rate-and-term $350k balance @ 7.5%, new 6.25%, 30→30, $6k closing Current P&I $2,447.25 · New P&I $2,155.01 · TI new $425,804 Current P&I $2,447.25 · New P&I $2,155.01 · TI new $425,804 6.25% anchor N/A $0 Pass — P&I and interest match; lifetime savings formula flagged separately
    S9 Refi shorten term $350k @ 7.5%, new 5.75%, 30→15, $6k closing Current P&I $2,447.25 · New P&I $2,906.44 · TI new $173,158 Current P&I $2,447.25 · New P&I $2,906.44 · TI new $173,158 5.75% anchor N/A $0 P&I Pass P&I/TI; lifetime savings blocked — pre-fix totalSavingsOverLife used new-term months only
    S10 Refi cash-out $300k balance, +$50k cash-out, new 6.5%, 30yr, $6k closing Current P&I $2,097.64 · New P&I $2,212.24 · TI new $446,406 Current P&I $2,097.64 · New P&I $2,212.24 · TI new $446,406 6.50% anchor N/A $0 Pass — assumes 7.5% / 30yr remaining on existing loan
    S11 Extra payment S1 + $200/mo extra P&I $2,022.62 · TI $302,714 · 281 mo payoff P&I $2,022.62 · TI $302,714 · 281 mo payoff 6.50% anchor N/A $0 Pass — extra payment simulation
    S12 Biweekly S1 biweekly mode Biweekly P&I $1,011.31 · TI $314,146 · 290 mo Biweekly P&I $1,011.31 · TI $314,146 · 290 mo 6.50% anchor N/A $0 Pass — 26-period biweekly simulation

    PITI assumptions (all mortgage scenarios)

    • Annual property tax: $3,600 ($300/mo)
    • Annual home insurance: $1,200 ($100/mo)
    • HOA: $0
    • Conventional PMI: 0.5%/yr on loan amount when down payment < 20%

    Refinance assumptions (S8–S10)

    • Closing costs: $6,000 (unless noted)
    • Remaining term on existing loan equals stated “from” term (e.g., 30 years remaining for 30→30)
    • S10 existing loan: $300k @ 7.5%, 30 years remaining (not specified in scenario brief; documented here)

    Test summary (Phase 1.2 fixture)

    Status Scenarios
    Passing (38/38) S1–S12 (all mortgage + refi scenarios)
    .fails() None

    Methodology footer

    Bankrate-equivalent P&I

    Standard fixed-rate amortization:

    M = P × [r(1+r)^n] / [(1+r)^n − 1]
    

    Where P = loan amount, r = annual rate ÷ 12 ÷ 100, n = term months.

    Implementation: computeMonthlyPI() in src/lib/mortgage-calculator-math.ts (identical to reference).

    Freddie Mac PMMS

    Rate anchor column cites FRED series MORTGAGE30US (Primary Mortgage Market Survey, 30-year fixed, weekly). Scenario rates are held at stated inputs for reproducibility; PMMS provides market context only.

    HUD FHA annual MIP

    Source: HUD Handbook 4000.1, annual MIP schedule for loans > 15 years:

    LTV Annual MIP
    > 95% 0.55%
    90.01–95% 0.50%
    ≤ 90% 0.45%

    VA funding fee

    Source: 38 CFR 36.4313 — funding fee is upfront (financed or paid at closing), not monthly MI. First-use regular military, zero-down: 2.15% of base loan (financed into P&I). Exempt toggle for Purple Heart / disability.

    USDA guarantee fee

    Source: USDA SFH Guaranteed Loan Program — 0.35%/yr annual guarantee fee on outstanding balance (simplified to initial loan for reference).

    Biweekly simulation

    26 half-payments per year at annualRate / 26 per period; biweekly payment = monthly P&I ÷ 2. See computeBiweeklyPayoff() in mortgage-calculator-math.ts.


    Workstream C (loan-type fees)

    • S2/S3/S7: FHA MIP, VA funding fee, and USDA guarantee fee modeled in computeMortgageScenario() — see mortgage-calculator.md

    Verification results

    ScenarioInputsOur resultReferenceDeltaSource
    S1✓ within tolerance$400k / 20% down / 6.5% / 30yr / ConvP&I $2,022.62 · PITI $2,422.62 · TI $408,142.36P&I $2,022.62 · PITI $2,422.62 · TI $408,142.36$0 (within ±$1/mo)Standard amortization
    S2✓ within tolerance$300k / 3.5% down / 6.75% / 30yr / FhaP&I $1,910.55 · PITI $2,443.24 · TI $393,232.14P&I $1,910.55 · PITI $2,443.24 · TI $393,232.14$0 (within ±$1/mo)HUD Mortgagee Letter 2023-05
    S3✓ within tolerance$450k / 0% down / 6.25% / 30yr / VaP&I $2,830.30 · PITI $3,230.30 · TI $559,232.29P&I $2,830.30 · PITI $3,230.30 · TI $559,232.29$0 (within ±$1/mo)38 CFR 36.4313
    S4✓ within tolerance$1200k / 20% down / 6.875% / 30yr / JumboP&I $6,306.52 · PITI $6,706.52 · TI $1,310,345.98P&I $6,306.52 · PITI $6,706.52 · TI $1,310,345.98$0 (within ±$1/mo)Standard amortization
    S5✓ within tolerance$400k / 20% down / 5.75% / 15yr / ConvP&I $2,657.31 · PITI $3,057.31 · TI $158,316.21P&I $2,657.31 · PITI $3,057.31 · TI $158,316.21$0 (within ±$1/mo)Standard amortization
    S6✓ within tolerance$600k / 5% down / 7% / 30yr / ConvP&I $3,792.22 · PITI $4,429.72 · TI $795,200.72P&I $3,792.22 · PITI $4,429.72 · TI $795,200.72$0 (within ±$1/mo)Standard amortization
    S7✓ within tolerance$250k / 0% down / 6.5% / 30yr / UsdaP&I $1,595.97 · PITI $2,068.89 · TI $322,049.83P&I $1,595.97 · PITI $2,068.89 · TI $322,049.83$0 (within ±$1/mo)USDA RD Instruction 3555
    S8✓ within tolerance$350k @ 7.5%, new 6.25%, 30→30, $6k closingCurrent P&I $2,447.25 · New P&I $2,155.01 · TI new $425,803.67Current P&I $2,447.25 · New P&I $2,155.01 · TI new $425,803.67$0 (within ±$1/mo)Standard amortization
    S9✓ within tolerance$350k @ 7.5%, new 5.75%, 30→15, $6k closingCurrent P&I $2,447.25 · New P&I $2,906.44 · TI new $173,158.35Current P&I $2,447.25 · New P&I $2,906.44 · TI new $173,158.35$0 (within ±$1/mo)Standard amortization
    S10✓ within tolerance$300k @ 7.5%, new 6.5%, 30→30, $6k closing, +$50k cash-outCurrent P&I $2,097.64 · New P&I $2,212.24 · TI new $446,405.71Current P&I $2,097.64 · New P&I $2,212.24 · TI new $446,405.71$0 (within ±$1/mo)Standard amortization
    S11✓ within toleranceS1 + $200/mo extraP&I $2,022.62 · TI $302,713.69 · 281 mo payoffP&I $2,022.62 · TI $302,713.69 · 281 mo payoff$0 (within ±$10 TI)Standard amortization
    S12✓ within toleranceS1 biweekly modeBiweekly P&I $1,011.31 · TI $314,145.80 · 290 moBiweekly P&I $1,011.31 · TI $314,145.80 · 290 mo$026-period biweekly simulation